SECTION 8 SUBSIDIES

Earlier this month, CTR put out a legal notice with Updates to Section 8 and Broker’s Lien Rights Materials.

Section 8 is a federally funded program to provide housing opportunities for individuals who qualify for rental assistance. In 1999, HUD merged two existing programs, a housing certificate program and a rental voucher program, into one program called the Housing Choice Voucher Program.

There are limits to the amount of the rent subsidy available. Until recently, rent limits were traditionally based on bedroom size, utilities provided and HUD’s fair market rent schedule which factored in regional differences in the rental housing market and an annual adjustment factor for rent increases (taking into account taxes, utilities, insurance and property improvements). Now, public housing authorities may use a “rent reasonableness” standard to determine what a fair market rent would be (evaluating location, quality, size, unit type, age, amenities, housing services, maintenance and utilities) and not be bound by HUD’s fair market rent schedule. HUD requires a housing authority using the reasonableness standard to document that the rent to the owners is reasonable and comparable to similar units in the area. Housing authorities do have some discretion to set the rent payment, however, anything higher or lower than a 10% change would require HUD approval.  Read the whole story here…

Regarding broker liens, the broker lien can be a very effective tool in the enforcement of compensation agreements. First applicable only to commercial real estate transactions, lien rights were granted in residential transactions in 1995. This Legal Alert reviews the significant provisions of the Broker Lien law and the two conditions  that must be met, in order to “attach” (which means to create an encumbrance on the property) a lien to the property. For more, please click here…

Members can contact the CTR Legal Hotline or call 860-566-8333 with any general legal questions.